CLEVELAND, Feb. 4, 2020
/PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a
leading global designer, producer and supplier of highly engineered
aircraft components, today reported results for the first quarter
ended December 28, 2019.
First quarter highlights include:
- Net sales of $1,465 million, up
47.5% from $993 million;
- Net income from continuing operations of $233 million, up 18.9% from $196 million;
- Earnings per share from continuing operations of $0.83, down 72.8% from $3.05;
- EBITDA As Defined of $681
million, up 39.8% from $487
million;
- Adjusted earnings per share of $4.93, up 28.1% from $3.85; and
- Reaffirmation of our previously stated guidance for fiscal 2020
Sales, EBITDA As Defined and Adjusted Earnings Per Share.
Net sales for the quarter rose 47.5%, or $472 million, to $1,465
million from $993 million in
the comparable quarter a year ago. Organic sales growth was
8.7%. Acquisition sales contributed $385 million, all of which are attributable to
Esterline.
Net income from continuing operations for the quarter increased
18.9% to $233 million compared to
$196 million in the comparable
quarter a year ago. The increase in net income from continuing
operations primarily reflects the increase in net sales described
above, offset partially by higher operating costs and amortization
expense attributable to Esterline, higher interest expense and
one-time refinancing costs.
GAAP earnings per share were reduced in the first quarter of
fiscal 2020 and 2019 by $3.22 per
share and $0.43 per share,
respectively, as a result of dividend equivalent payments made
during each quarter. As a reminder, GAAP earnings per share are
reduced when TransDigm makes dividend equivalent payments pursuant
to the Company's stock option plans. These dividend equivalent
payments are made during the Company's first fiscal quarter each
year and also upon payment of any special dividends.
Net income from discontinued operations for the quarter was
$71 million, or $1.24 per share. These amounts are attributable
to the Souriau-Sunbank Connection Technologies business, which was
sold to Eaton Corporation plc (NYSE: ETN) in a transaction valued
at approximately $920 million. There
were no discontinued operations in the comparable quarter a year
ago.
Adjusted net income for the quarter increased 31.0% to
$283 million, or $4.93 per share, from $216
million, or $3.85 per share,
in the comparable quarter a year ago.
EBITDA for the quarter increased 33.5% to $610 million from $457
million for the comparable quarter a year ago. EBITDA As
Defined for the period increased 39.8% to $681 million compared with $487 million in the comparable quarter a year
ago. EBITDA As Defined as a percentage of net sales for the quarter
was 46.5%.
"We are pleased with our first quarter operating results and the
strong start to our fiscal year," stated Kevin
Stein, TransDigm Group's President and Chief Executive
Officer. "Our consolidated business performed well in the first
quarter with organic revenue growth driven mainly by the commercial
aftermarket and defense market. We are particularly pleased with
our EBITDA As Defined improvement for the quarter. Excluding the
dilutive impact of Esterline, our EBITDA As Defined continued to
expand sequentially and over the prior year period to above 51% in
the quarter. Additionally, the Esterline acquisition still
continues to track ahead of our expectations."
During the quarter, on November 13,
2019, TransDigm successfully completed a private offering of
$2.65 billion of 5.50% senior
subordinated notes due 2027. TransDigm used a portion of the
net proceeds from the offering to redeem all of its $1.15 billion of outstanding 6.0% senior
subordinated notes due 2022.
Please see the attached tables for a reconciliation of net
income to EBITDA, EBITDA As Defined, and adjusted net income; a
reconciliation of net cash provided by operating activities to
EBITDA and EBITDA As Defined, and a reconciliation of earnings per
share to adjusted earnings per share for the periods discussed in
this press release.
Fiscal 2020 Outlook
"We are maintaining our fiscal 2020 sales, EBITDA As Defined and
adjusted earnings per share guidance at this time," Mr. Stein
continued. "Currently we do not anticipate a material impact to our
consolidated financial results from the evolving 737 Max situation
and other global concerns. We are adjusting our GAAP earnings per
share guidance to reflect the dividend equivalent payments related
to the $32.50 special dividend
declared in December."
Assuming no additional acquisitions, divestitures or refinancing
transactions, TransDigm expects fiscal 2020 financial guidance to
be as follows:
- Net sales are anticipated to be in the range of $6,175 million to $6,325
million compared with $5,223
million in fiscal 2019;
- Net income from continuing operations is anticipated to be in
the range of $1,000 million to
$1,080 million compared with
$839 million in fiscal 2019;
- Earnings per share from continuing operations is expected to be
in the range of $14.20 to
$15.60 per share based upon weighted
average shares outstanding of 57.4 compared with $12.94 per share in fiscal 2019;
- EBITDA As Defined is anticipated to be in the range of
$2,775 million to $2,875 million compared with $2,419 million in fiscal 2019; and
- Adjusted earnings per share is expected to be in the range of
$19.80 to $21.20 per share compared with $18.27 per share in fiscal 2019.
Please see the attached table 6 for a reconciliation of EBITDA,
EBITDA As Defined to net income and reported earnings per share to
adjusted earnings per share guidance mid-point estimated for the
fiscal year ending September 30,
2020. Additionally, please see the attached table 7 for
comparison of the current fiscal year 2020 guidance versus the
previously issued fiscal year 2020 guidance.
Earnings Conference Call
TransDigm Group will host a conference call for investors and
security analysts on February 4, 2020, beginning at
11:00 a.m., Eastern Time. To join the
call, dial (866) 221-1741 and enter the passcode 1257328.
International callers should dial (270) 215-9922 and use the same
passcode. A live audio webcast can be accessed online at
http://www.transdigm.com. A slide presentation will also be
available for reference during the conference call; go to the
investor relations page of our website and click on
"Presentations."
The call will be archived on the website and available for
replay at approximately 2:00 p.m., Eastern
Time. A telephone replay will be available for one week by
dialing (855) 859-2056 and entering the passcode 1257328.
International callers should dial (404) 537-3406 and use the same
passcode.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a
leading global designer, producer and supplier of highly engineered
aircraft components for use on nearly all commercial and military
aircraft in service today. Major product offerings, substantially
all of which are ultimately provided to end-users in the aerospace
industry, include mechanical/electro-mechanical actuators and
controls, ignition systems and engine technology, specialized pumps
and valves, power conditioning devices, specialized AC/DC electric
motors and generators, NiCad batteries and chargers, engineered
latching and locking devices, rods and locking devices, engineered
connectors and elastomers, databus and power controls, cockpit
security components and systems, specialized cockpit displays,
aircraft audio systems, specialized lavatory components, seat belts
and safety restraints, engineered interior surfaces and related
components, advanced sensor products, switches and relay panels,
advanced displays, thermal protection and insulation, lighting and
control technology, military personnel parachutes, high performance
hoists, winches and lifting devices, and cargo loading, handling
and delivery systems.
Non-GAAP Supplemental Information
EBITDA, EBITDA As Defined, EBITDA As Defined Margin, adjusted
net income and adjusted earnings per share are non-GAAP financial
measures presented in this press release as supplemental
disclosures to net income and reported results. TransDigm Group
defines EBITDA as earnings before interest, taxes, depreciation and
amortization and defines EBITDA As Defined as EBITDA plus certain
non-operating items, refinancing costs, acquisition-related costs,
transaction-related costs and non-cash charges incurred in
connection with certain employee benefit plans. TransDigm Group
defines adjusted net income as net income plus purchase accounting
backlog amortization expense, effects from the sale on businesses,
refinancing costs, acquisition-related costs, transaction-related
costs and non-cash charges incurred in connection with certain
employee benefit plans. EBITDA As Defined Margin represents EBITDA
As Defined as a percentage of net sales. TransDigm Group defines
adjusted diluted earnings per share as adjusted net income divided
by the total shares for basic and diluted earnings per share. For
more information regarding the computation of EBITDA, EBITDA As
Defined and adjusted net income and adjusted earnings per share,
please see the attached financial tables.
TransDigm Group presents these non-GAAP financial measures
because it believes that they are useful indicators of its
operating performance. TransDigm Group believes that EBITDA is
useful to investors because it is frequently used by securities
analysts, investors and other interested parties to measure
operating performance among companies with different capital
structures, effective tax rates and tax attributes, capitalized
asset values and employee compensation structures, all of which can
vary substantially from company to company. In addition, analysts,
rating agencies and others use EBITDA to evaluate a company's
ability to incur and service debt. EBITDA As Defined is used to
measure TransDigm Inc.'s compliance with the financial covenant
contained in its credit facility. TransDigm Group's management also
uses EBITDA As Defined to review and assess its operating
performance, to prepare its annual budget and financial projections
and to review and evaluate its management team in connection with
employee incentive programs. Moreover, TransDigm Group's management
uses EBITDA As Defined to evaluate acquisitions and as a liquidity
measure. In addition, TransDigm Group's management uses adjusted
net income as a measure of comparable operating performance between
time periods and among companies as it is reflective of changes in
pricing decisions, cost controls and other factors that affect
operating performance.
None of EBITDA, EBITDA As Defined, EBITDA As Defined Margin,
adjusted net income or adjusted earnings per share is a measurement
of financial performance under GAAP and such financial measures
should not be considered as an alternative to net income, operating
income, earnings per share, cash flows from operating activities or
other measures of performance determined in accordance with GAAP.
In addition, TransDigm Group's calculation of these non-GAAP
financial measures may not be comparable to the calculation of
similarly titled measures reported by other companies.
Although we use EBITDA and EBITDA As Defined as measures to
assess the performance of our business and for the other purposes
set forth above, the use of these non-GAAP financial measures as
analytical tools has limitations, and you should not consider any
of them in isolation, or as a substitute for analysis of our
results of operations as reported in accordance with GAAP. Some of
these limitations are:
- neither EBITDA nor EBITDA As Defined reflects the significant
interest expense, or the cash requirements necessary to service
interest payments, on our indebtedness;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and neither EBITDA nor EBITDA As Defined
reflects any cash requirements for such replacements;
- the omission of the substantial amortization expense associated
with our intangible assets further limits the usefulness of EBITDA
and EBITDA As Defined;
- neither EBITDA nor EBITDA As Defined includes the payment of
taxes, which is a necessary element of our operations; and
- EBITDA As Defined excludes the cash expense we have incurred to
integrate acquired businesses into our operations, which is a
necessary element of certain of our acquisitions.
Forward-Looking Statements
Statements in this press release that are not historical facts,
including statements under the heading "Fiscal 2020 Outlook," are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.Words such as "believe,"
"may," "will," "should," "expect," "intend," "plan," "predict,"
"anticipate," "estimate," or "continue" and other words and terms
of similar meaning may identify forward-looking statements.
All forward-looking statements involve risks and uncertainties
which could affect TransDigm Group's actual results and could cause
its actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of,
TransDigm Group. These risks and uncertainties include but are not
limited to: the sensitivity of our business to the number of flight
hours that our customers' planes spend aloft and our customers'
profitability, both of which are affected by general economic
conditions; future geopolitical or worldwide events; cyber-security
threats and natural disasters; our reliance on certain customers;
the U.S. defense budget and risks associated with being a
government supplier including government audits and inspections;
failure to maintain government or industry approvals; failure to
complete or successfully integrate acquisitions, including our
acquisition of Esterline; our indebtedness; potential environmental
liabilities; liabilities arising in connection with litigation;
increases in raw material costs, taxes and labor costs that cannot
be recovered in product pricing; risks and costs associated with
our international sales and operations; and other risk factors.
Further information regarding the important factors that could
cause actual results to differ materially from projected results
can be found in TransDigm Group's Annual Report on Form 10-K and
other reports that TransDigm Group or its subsidiaries have filed
with the Securities and Exchange Commission. Except as required by
law, TransDigm Group undertakes no obligation to revise or update
the forward-looking statements contained in this press release.
Contact:
|
Investor
Relations
|
|
216-706-2945
|
|
ir@transdigm.com
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
FOR THE THIRTEEN
WEEK PERIODS ENDED
|
|
Table
1
|
DECEMBER 28, 2019
AND DECEMBER 29, 2018
|
|
(Amounts in
millions, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December 28,
2019
|
|
December 29,
2018
|
NET SALES
|
|
$
|
1,465
|
|
$
|
993
|
COST OF
SALES
|
|
664
|
|
429
|
GROSS
PROFIT
|
|
801
|
|
564
|
SELLING AND
ADMINISTRATIVE EXPENSES
|
|
201
|
|
122
|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
40
|
|
20
|
INCOME FROM
OPERATIONS
|
|
560
|
|
422
|
INTEREST EXPENSE -
NET
|
|
248
|
|
172
|
REFINANCING
COSTS
|
|
22
|
|
—
|
OTHER
INCOME
|
|
(3)
|
|
—
|
INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
293
|
|
250
|
INCOME TAX
PROVISION
|
|
59
|
|
54
|
INCOME FROM
CONTINUING OPERATIONS
|
|
234
|
|
196
|
INCOME FROM
DISCONTINUED OPERATIONS, NET OF TAX
|
|
71
|
|
—
|
NET INCOME
|
|
305
|
|
196
|
LESS: NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
(1)
|
|
—
|
NET INCOME
ATTRIBUTABLE TO TD GROUP
|
|
$
|
304
|
|
$
|
196
|
NET INCOME APPLICABLE
TO TD GROUP COMMON STOCKHOLDERS
|
|
$
|
119
|
|
$
|
172
|
Earnings per share
attributable to TD Group common stockholders:
|
|
|
|
|
Earnings per share
from continuing operations - basic and diluted
|
|
$
|
0.83
|
|
$
|
3.05
|
Earnings per share
from discontinued operations - basic and diluted
|
|
1.24
|
|
—
|
Earnings per
share
|
|
$
|
2.07
|
|
$
|
3.05
|
Cash dividends paid
per common share
|
|
$
|
32.50
|
|
$
|
—
|
Weighted-average
shares outstanding:
|
|
|
|
|
Basic and
diluted
|
|
57.4
|
|
56.3
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
|
|
EBITDA AS DEFINED
TO NET INCOME
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS ENDED
|
|
Table
2
|
DECEMBER 28, 2019
AND DECEMBER 29, 2018
|
|
(Amounts in
millions, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December 28,
2019
|
|
December 29,
2018
|
Net income including
noncontrolling interests
|
|
$
|
305
|
|
|
$
|
196
|
|
Less: Income from
discontinued operations, net of tax (1)
|
|
71
|
|
|
—
|
|
Income from
continuing operations including noncontrolling interest
|
|
234
|
|
|
196
|
|
Adjustments:
|
|
|
|
|
Depreciation and
amortization expense
|
|
69
|
|
|
35
|
|
Interest expense,
net
|
|
248
|
|
|
172
|
|
Income tax
provision
|
|
59
|
|
|
54
|
|
EBITDA
|
|
610
|
|
|
457
|
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses and adjustments (2)
|
|
7
|
|
|
11
|
|
Non-cash stock
compensation expense (3)
|
|
26
|
|
|
18
|
|
Refinancing costs
(4)
|
|
22
|
|
|
—
|
|
Other, net
(5)
|
|
16
|
|
|
1
|
|
Gross Adjustments to
EBITDA
|
|
71
|
|
|
30
|
|
EBITDA As
Defined
|
|
$
|
681
|
|
|
$
|
487
|
|
EBITDA As Defined,
Margin (6)
|
|
46.5
|
%
|
|
49.0
|
%
|
|
|
(1)
|
The fiscal 2020
results includes the divestiture of Souriau-Sunbank (December
2019).
|
|
|
(2)
|
Represents accounting
adjustments to inventory associated with acquisitions of businesses
and product lines that were charged to cost of sales when the
inventory was sold; costs incurred to integrate acquired businesses
and product lines into TD Group's operations, facility relocation
costs and other acquisition-related costs; transaction-related
costs comprising deal fees; legal, financial and tax due diligence
expenses; and valuation costs that are required to be expensed as
incurred.
|
|
|
(3)
|
Represents the
compensation expense recognized by TD Group under our stock
incentive plans.
|
|
|
(4)
|
Represents costs
expensed related to debt financing activities, including new
issuances, extinguishments, refinancings and amendments to existing
agreements.
|
|
|
(5)
|
Primarily represents
foreign currency transaction gain or loss, payroll withholding
taxes related to dividend equivalent payments and stock option
exercises, non-service related pension costs, deferred compensation
and gain or loss on sale of fixed assets.
|
|
|
(6)
|
The EBITDA As Defined
margin represents the amount of EBITDA As Defined as a percentage
of sales.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF
|
|
|
|
REPORTED EARNINGS
PER SHARE TO
|
|
|
|
ADJUSTED EARNINGS
PER SHARE
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS ENDED
|
Table
3
|
DECEMBER 28, 2019
AND DECEMBER 29, 2018
|
(Amounts in
millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December 28,
2019
|
|
December 29,
2018
|
Reported Earnings
Per Share
|
|
|
|
|
Income from
continuing operations including noncontrolling interests
|
|
$
|
234
|
|
$
|
196
|
Less: Net income
attributable to noncontrolling interests
|
|
(1)
|
|
—
|
Net income from
continuing operations attributable to TD Group
|
|
233
|
|
196
|
Less: Special
dividends declared or paid on participating securities
|
|
(185)
|
|
(24)
|
|
|
48
|
|
172
|
Income from
discontinued operations, net of tax
|
|
71
|
|
—
|
Net income applicable
to TD Group common stockholders - basic and diluted
|
|
$
|
119
|
|
$
|
172
|
Weighted-average
shares outstanding under the two-class method
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
53.6
|
|
52.8
|
Vested options deemed
participating securities
|
|
3.8
|
|
3.5
|
Total shares for
basic and diluted earnings per share
|
|
57.4
|
|
56.3
|
Net earnings per
share attributable to TD Group from continuing operations - basic
and diluted
|
|
$
|
0.83
|
|
$
|
3.05
|
Net earnings per
share attributable to TD Group from discontinued operations - basic
and diluted
|
|
1.24
|
|
—
|
Basic and diluted
earnings per share
|
|
$
|
2.07
|
|
$
|
3.05
|
Adjusted Earnings
Per Share
|
|
|
Net income from
continuing operations attributable to TD Group
|
|
233
|
|
$
|
196
|
Gross adjustments to
EBITDA
|
|
71
|
|
29
|
Purchase accounting
backlog amortization
|
|
12
|
|
1
|
Tax adjustment
(1)
|
|
(33)
|
|
(10)
|
Adjusted net
income
|
|
$
|
283
|
|
$
|
216
|
Adjusted diluted
earnings per share under the two-class method
|
|
$
|
4.93
|
|
$
|
3.85
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
Diluted earnings per
share from continuing operations
|
|
$
|
0.83
|
|
$
|
3.05
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
Inclusion of the dividend equivalent payments
|
|
3.22
|
|
0.43
|
Acquisition-related expenses
|
|
0.24
|
|
0.17
|
Non-cash
stock compensation expense
|
|
0.34
|
|
0.24
|
Refinancing costs
|
|
0.30
|
|
0.01
|
Reduction in income tax provision due to excess tax benefits on
stock compensation
|
|
(0.22)
|
|
(0.06)
|
Other,
net
|
|
0.22
|
|
0.01
|
Adjusted earnings per
share
|
|
$
|
4.93
|
|
$
|
3.85
|
|
|
(1)
|
For the thirteen week
periods ended December 28, 2019 and December 29, 2018, the Tax
adjustment represents the tax effect of the adjustments at the
applicable effective tax rate, as well as the impact on the
effective tax rate when excluding the excess tax benefits on stock
option exercises. Stock compensation expense is excluded from
adjusted net income and therefore we have excluded the impact that
the excess tax benefits on stock option exercises have on the
effective tax rate for determining adjusted net income.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
|
Table
4
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA,
|
|
EBITDA AS
DEFINED
|
|
FOR THE THIRTEEN
WEEK PERIODS ENDED
|
|
DECEMBER 28, 2019
AND DECEMBER 29, 2018
|
|
|
|
(Amounts in
millions)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December 28,
2019
|
|
December 29,
2018
|
Net cash provided by
operating activities
|
|
$
|
433
|
|
$
|
330
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
(89)
|
|
(75)
|
Interest expense -
net (1)
|
|
240
|
|
166
|
Income tax provision
- current
|
|
87
|
|
54
|
Non-cash stock
compensation expense (2)
|
|
(26)
|
|
(18)
|
Refinancing costs
(4)
|
|
(22)
|
|
—
|
EBITDA from
discontinued operations (6)
|
|
(13)
|
|
—
|
EBITDA
|
|
610
|
|
457
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses (3)
|
|
7
|
|
11
|
Non-cash stock
compensation expense (2)
|
|
26
|
|
18
|
Refinancing costs
(4)
|
|
22
|
|
—
|
Other, net
(5)
|
|
16
|
|
1
|
EBITDA As
Defined
|
|
$
|
681
|
|
$
|
487
|
|
|
(1)
|
Represents interest
expense excluding the amortization of debt issue costs and premium
and discount on debt.
|
|
|
(2)
|
Represents the
compensation expense recognized by TD Group under our stock
incentive plans.
|
|
|
(3)
|
Represents accounting
adjustments to inventory associated with acquisitions of businesses
and product lines that were charged to cost of sales when the
inventory was sold; costs incurred to integrate acquired businesses
and product lines into TD Group's operations, facility relocation
costs and other acquisition-related costs; transaction-related
costs comprising deal fees; legal, financial and tax due diligence
expenses and valuation costs that are required to be expensed as
incurred.
|
|
|
(4)
|
Represents costs
expensed related to debt financing activities, including new
issuances, extinguishments, refinancings and amendments to existing
agreements.
|
|
|
(5)
|
Primarily represents
foreign currency transaction gain or loss, payroll withholding
taxes related to dividend equivalent payments and stock option
exercises, non-service related pension costs, deferred compensation
and gain or loss on sale of fixed assets.
|
|
|
(6)
|
The fiscal 2020
results include the divestiture of Souriau-Sunbank (December
2019).
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - BALANCE SHEET DATA
|
|
Table
5
|
(Amounts in
millions)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
December 28,
2019
|
|
September 30,
2019
|
Cash and cash
equivalents (1)
|
|
$
|
4,194
|
|
$
|
1,467
|
Trade accounts
receivable - net
|
|
1,025
|
|
1,068
|
Inventories -
net
|
|
1,294
|
|
1,233
|
Current portion of
long-term debt
|
|
80
|
|
80
|
Short-term
borrowings-trade receivable securitization facility
|
|
350
|
|
350
|
Accounts
payable
|
|
265
|
|
276
|
Accrued current
liabilities (1)
|
|
2,655
|
|
675
|
Long-term
debt
|
|
17,952
|
|
16,469
|
Total TD Group
stockholders' deficit
|
|
(4,303)
|
|
(2,894)
|
|
|
(1)
|
On January 7,
2020, the Company paid $1.9 billion in special dividends and
dividend equivalent payments in connection with the Board of
Directors' authorization and declaration of a special cash dividend
of $32.50 on each outstanding share of common stock and cash
dividend equivalent payments on vested options outstanding under
its stock incentive plans on December 20, 2019. As of
December 28, 2019, approximately $1.9 billion was accrued for
the special dividend and dividend equivalent payments in accrued
liabilities in the condensed consolidated balance
sheets.
|
TRANSDIGM GROUP
INCORPORATED
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
EBITDA AS DEFINED
TO NET INCOME AND REPORTED EARNINGS
|
PER SHARE TO
ADJUSTED EARNINGS PER SHARE GUIDANCE MID-POINT
|
FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 2020
|
(Amounts in
millions, except per share amounts)
|
Table
6
|
(Unaudited)
|
|
|
|
|
|
|
|
GUIDANCE
MID-POINT
|
|
|
Year
Ended
|
|
|
September
30,
|
|
|
2020
|
Net income
|
|
$
|
1,040
|
|
Adjustments:
|
|
|
Depreciation and
amortization expense
|
|
302
|
|
Interest expense -
net
|
|
1,020
|
|
Income tax
provision
|
|
317
|
|
EBITDA
|
|
2,679
|
|
Adjustments:
|
|
|
Acquisition-related
expenses and adjustments (1) and other, net
(1)
|
|
28
|
|
Non-cash stock
compensation expense (1)
|
|
96
|
|
Refinancing costs
(1)
|
|
22
|
|
Gross Adjustments to
EBITDA
|
|
146
|
|
EBITDA As
Defined
|
|
$
|
2,825
|
|
EBITDA As Defined,
Margin (1)
|
|
45.2
|
%
|
|
|
|
Earnings per
share
|
|
$
|
14.90
|
|
Adjustments to
earnings per share:
|
|
|
Inclusion of the
dividend equivalent payments
|
|
3.22
|
|
Acquisition-related
expenses and adjustments and other, net
|
|
1.19
|
|
Non-cash stock
compensation expense
|
|
1.27
|
|
Refinancing
costs
|
|
0.29
|
|
Reduction in income
tax provision due to excess tax benefits on stock
compensation
|
|
(0.37)
|
|
Adjusted earnings per
share
|
|
$
|
20.50
|
|
|
|
|
Weighted-average
shares outstanding
|
|
57.4
|
|
|
(1)
|
Refer to Table 2
above for definitions of Non-GAAP measurement
adjustments.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
SUPPLEMENTAL
INFORMATION
|
|
|
CURRENT FISCAL
YEAR 2020 GUIDANCE VERSUS PRIOR FISCAL YEAR 2020
GUIDANCE
|
Table
7
|
|
(Amounts in
millions, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Current
|
|
Prior
|
|
|
|
|
Fiscal Year
2020
|
|
Fiscal Year
2019
|
|
|
|
|
Guidance
|
|
Guidance
|
|
Change
at
|
|
|
Issued February
4,
2020
|
|
Issued November
19,
2019
|
|
Mid-Point
|
|
Sales
|
$6,175 to
$6,325
|
|
$6,175 to
$6,325
|
|
$—
|
|
|
|
|
|
|
|
|
GAAP Net Income from
Continuing Operations
|
$1,000 to
$1,080
|
|
$1,000 to
$1,080
|
|
$—
|
|
|
|
|
|
|
|
|
Special Dividends
Declared or Paid on Participating Securities
|
$185
|
|
$65
|
|
$120
|
|
|
|
|
|
|
|
|
GAAP Earnings Per
Share from Continuing Operations
|
$14.20 to
$15.60
|
|
$16.30 to
$17.70
|
|
$(2.10)
|
|
|
|
|
|
|
|
|
EBITDA As
Defined
|
$2,775 to
$2,875
|
|
$2,775 to
$2,875
|
|
$—
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
$19.80 to
$21.20
|
|
$19.80 to
$21.20
|
|
$—
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding
|
57.4
|
|
57.4
|
|
—
|
|