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Earnings Highlights and Review: Triumph Reported Better than Expected Quarterly Results

Research Desk Line-up: TAT Technologies Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 15, 2017 / Pro-Trader Daily publishes post-earnings coverage on Triumph Group, Inc. (NYSE: TGI) following the Company's release of its fourth quarter and fiscal 2017 financial results on May 24, 2017. The aircraft supplier's net loss narrowed during the quarter. Triumph Group also provided revenue guidance for fiscal 2018. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected TAT Technologies, Ltd. (NASDAQ: TATT) for due-diligence and potential coverage as the Company reported on May 17, 2017, its unaudited financial results for Q1 2017 which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on TAT Technologies when we publish it.

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Earnings Reviewed

For its fourth quarter ended March 31, 2017, Triumph's net sales were $919.9 million, down 13% compared to net sales of $1.06 billion in Q4 FY16. On an organic basis, excluding the impact of divestitures, the Company's sales fell 13%, primarily due to production rate reductions by customers on the 747-8, C-17, and G450/550 programs, changes in model mix, decreased volume in military end market and foreign exchange rates. Triumph's revenue numbers, however, surpassed analysts' expectations of $915.6 million. For FY17, the Company's revenues totaled $3.53 billion compared to revenues of $3.89 billion in FY16.

For Q4 FY17, Triumph reported operating loss of $115.49 million compared to operating loss of $1.18 billion in Q4 FY16. The Company's operating margin was negative 12.6% compared to negative 111.8% in the prior year's same quarter. Excluding a $266.3 million non-cash charge for the impairment of goodwill for Triumph Aerospace Structures, Triumph's operating income for Q4 FY17 was $150.8 million, reflecting an operating margin of 16%.

Triumph reported net loss of $126.83 million, or $2.57 per share, compared to net loss of $1.08 billion, or $22.01 per diluted share, in Q1 2016. The Company's net income for Q4 FY17 was $139.5 million, or $2.81 per diluted share, excluding the impairment charges. On an adjusted basis, the Company's earnings totaled $3.09 per share, outperforming Wall Street's expectations of $1.60.

Segment Results

During Q4 FY17, Triumph's Integrated Systems segment's sales fell 7% to $282 million compared to sales of $302.80 million in Q4 FY16. The segment's operating income totaled $55.92 million, reflecting an operating margin of 20%, versus operating income of $66.67 million, or operating margin of 22%, in the prior year's comparable quarter.

The Company's Aerospace Structures division sales declined 20% on a y-o-y basis to $338.75 million in the reported quarter compared to sales of $423.62 million in the prior year's same quarter. In Q4 FY17, the segment recorded operating loss of $166.71 million, or negative operating margin of 49%, which narrowed compared to operating loss of $1.22 billion, or negative operating margin of 289%, in Q4 FY16.

For Q4 FY17, Triumph's Precision Components unit recorded revenue of $247.57 million, down 12% compared to revenue of $280.36 million in Q4 FY16. The segment's operating income soared 777% to $11.10 million compared to $1.27 million in the prior year's same quarter.

Triumph's Product Support segment generated revenue of $81.01 million in Q4 FY17 compared to revenue of $84.75 million in Q4 FY16. The division's operating income came in at $12.82 million compared to operating loss of $6.54 million in the year ago same period.

Cash Matters

As of March 31, 2017, Triumph has cash and cash equivalents worth $69.63 million compared with $20.98 million as of March 31, 2016. For Q4 FY17, Triumph's cash flow from operations was $454.0 million, which included approximately $324.0 million of increases in customer advances. Excluding these increases in customer advances, cash flow from operations was $130.0 million for the reported quarter, reflecting a sequential improvement from a cash use of $41.4 million resulting from strong working capital management partially offset by continued investment in key development programs and restructuring efforts.

Outlook

For FY18, Triumph is forecasting revenue to be in the range of $3.1 billion to $3.2 billion, and anticipates revenue to increase further in Fiscal 2019 as development programs enter into production and sales from new wins offset sun-setting programs.

Stock Performance

Triumph's share price finished yesterday's trading session at $33.05, marginally sliding 0.15%. A total volume of 834.64 thousand shares have exchanged hands. The Company's stock price soared 61.61% in the last one month, 34.08% in the past three months, and 16.78% in the previous six months. Additionally, the stock rallied 24.72% since the start of the year. Shares of the Company have a dividend yield of 0.48% and currently have a market cap of $1.63 billion.

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