Triumph Group (NYSE: TGI) reported Q1 EPS of ($0.19), $0.03 better than the analyst estimate of ($0.22). Revenue for the quarter came in at $495.1 million versus the consensus estimate of $459.68 million.

First Quarter Fiscal 2021

• Net sales of $495.1 million
• Operating loss of $252.4 million with operating margin of (51.0%) and included an impairment charge of $252.4 million; adjusted operating income of $15.4 million with adjusted operating margin of 3.1%
• Net loss of $277.3 million, or ($5.35) per share; adjusted net loss of $9.5 million, or ($0.19) per share
• Cash flow used in operations of ($197.5) million, and free cash use of ($205.2) million

Full-Year Fiscal 2021 Net Sales Guidance

• Net sales between $1.8 - $1.9 billion

"For the first quarter of our fiscal year, organic revenue decreased by 29% due primarily to expected declines in Aerospace Structures associated with planned reductions from our portfolio transformation and the COVID-19 pandemic. Systems & Support gross margins were in line with the prior year, benefitting from increased military volumes, improved operational efficiencies and cost reduction initiatives," stated Daniel J. Crowley, Triumph's president and chief executive officer. "We continued executing our plan to exit legacy programs in Aerospace Structures with the recent announcements of the sales of our G650 wing kitting and engineering services program to Gulfstream and of our two Composite Structures factories to Arlington Capital Partners. These transactions will benefit Triumph in fiscal 2021 and beyond."

Mr. Crowley continued, "Our total cash usage for the first quarter was largely associated with working capital expansion, yet contained by the actions we implemented early in the quarter to conserve cash. We expect our cash use to slow in the second quarter and recover in the second half as we exit the last of our cash burning programs and begin to generate positive free cash flow. We are continuing to identify further cost reduction actions to enhance our liquidity position and ensure financial flexibility in the current operating environment while supporting the needs of our customers."

Mr. Crowley concluded, "The steps we took this quarter build on our momentum and drive improved profitability and cash flow to become a more predictable and diverse business. As we look out to the rest of the year, Triumph remains focused on protecting the health and safety of our people, conserving our cash and partnering with our customers to ensure we are best positioned for recovery for the benefit of all our stakeholders."

GUIDANCE:

Triumph Group sees FY2021 revenue of $1.8-1.9 billion, versus the consensus of $1.97 billion.

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