Triumph Group (TGI) Tops Q4 EPS by 5c, Revenues Beat

Triumph Group (NYSE: TGI) reported Q4 EPS of $0.69, $0.05 better than the analyst estimate of $0.64. Revenue for the quarter came in at $693.1 million versus the consensus estimate of $660.1 million.

Fourth Quarter Fiscal 2020

• Net sales of $693.1 million
• Operating loss of $40.3 million with operating margin of (5.8%); adjusted operating income of $39.4 million with adjusted operating margin of 5.7%
• Net loss of $75.1 million, or ($1.45) per share; adjusted net income of $36.0 million, or $0.69 per diluted share
• Cash flow provided by operations of $57.4 million, and free cash flow of $44.8 million

"The fourth quarter of fiscal 2020 completed a strong year for Triumph Group, and we delivered on our commitment to generate positive free cash flow," stated Daniel J. Crowley, Triumph's president and chief executive officer. "Military deliveries helped offset the impacts of the 737 MAX production slow down and effects of the COVID-19 crisis during the quarter. Organic revenue decreased by 6% due to expected declines in Aerospace Structures, and to a lesser extent Systems & Support. Systems & Support margins, excluding impairments and restructuring, were in line with the prior year, benefitting from improved operational efficiencies and cost reduction initiatives. Importantly, we made strong progress executing our plan to exit legacy programs in Aerospace Structures, a key initiative that will benefit Triumph in fiscal 2021 and beyond."

Mr. Crowley continued, "Triumph improved profitability and cash flow year-over-year and entered the commercial downturn with momentum as a more predictable business as a result of the actions we've taken to de-risk our portfolio and backlog and stabilize our cash flows. Beyond these proactive steps, we recently amended our credit facility and implemented cost containment actions by managing our workforce and supply chain to enhance our liquidity position and ensure financial flexibility in the current operating environment while supporting the demands of customers."

Mr. Crowley concluded, "Triumph is focused on protecting the health and safety of our people, conserving our cash and partnering with our customers to ensure we are well-positioned for recovery for the benefit of all our stakeholders."

Outlook

The Company is not providing financial guidance for its fiscal year ending March 31, 2021 at this time due to the uncertainty around the ultimate impact of COVID-19 on the global market and economic conditions.

For earnings history and earnings-related data on Triumph Group (TGI) click here.

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