PROVIDES FISCAL YEAR 2025 GUIDANCE RADNOR, Pa., May 23, 2024 /PRNewswire/ -- Triumph Group, Inc. (NYSE:TGI) ("TRIUMPH" or the "Company") today reported financial results for its fourth quarter and fiscal 2024, which ended March 31, 2024. 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 Dan Crowley, TRIUMPH's chairman, president and chief executive officer.  "We completed the divestiture of our third-party Product Support MRO business during the fourth quarter and retired over $550.0 million of debt with the sale proceeds to materially accelerate our de-leveraging as committed to our shareholders during our September 2023 Investor Day." "We were pleased to report our eighth consecutive quarter of year over year organic growth as aftermarket volume grew rapidly in our remaining OEM businesses. While sales increased in our Interiors business in the fourth quarter, its profit and cash flow continued to lag due to external cost drivers.  We expect these headwinds to abate as narrowbody aircraft rates recover. However, TRIUMPH generated positive free cash flow overall and achieved our strongest margins of the fiscal year due to benefits from higher overall sales and strong aftermarket mix." Mr. Crowley continued, "TRIUMPH accelerated new business capture with a year-to-date book to bill rate of 1.28, lifting our backlog 22% year over year to the highest level since March 2020.  Our fiscal 2025 guidance reflects the strength of TRIUMPH's portfolio, helping to offset short-term end market headwinds, while enabling improvement across our key financial metrics, notably an estimated 300 basis point expansion in Adjusted EBITDAP margins. With the anticipated market demand from the coming aerospace and defense upcycle, we expect to deliver top and bottom-line growth rates at or above the market as we benefit from a focus on OEM and related aftermarket product lines." Fourth Quarter and Full Year Fiscal 2024 Overview Three Months Ended March 31, Fiscal Year Ended March 31, ($ 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 Net Sales* $ 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 ($1.5) million, or (1.1%) in the quarter primarily on a year-to-date adjustment to non-aviation revenue, offset by increases in production volumes on the Boeing 787 program. Aftermarket sales include both repair and overhaul services as well as the sales of spare parts. Commercial Aftermarket sales increased $18.0 million, or 47.1%, driven by the continued improvement in overall air travel metrics, favorably impacting both spare part sales and repair and overhaul services. The impacts from divestitures and exited or sunsetting programs on Commercial aftermarket sales was not significant. Military OEM sales decreased ($9.0) million, or (11.2%) in the quarter, as decreased sales on military rotorcraft such as V-22 were partially offset by volume on other military programs, including fixed wing platforms. Military aftermarket sales increased $11.2 million, or 20.7% in the quarter, primarily on increased spares and repairs for military rotorcraft programs. Non-aviation sales include a year-to-date true-up adjustment, primarily from Commercial OEM sales. TRIUMPH's results included the following: ($ 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 $44.8 million includes $5.0 million of restructuring costs related to the $40.0 million in cost reduction actions noted last quarter and $6.0 million in legal contingencies loss related to updates in our previously disclosed arbitration in our legacy Structures business.  Net income from continuing operations for the fourth quarter of fiscal 2024 was $5.5 million or $0.07 per diluted share.  In addition to the adjustments impacting operating income, the company incurred $6.8 million in debt extinguishment loss related to the retirement of debt in the quarter. 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 $1.9 billion up 22% from prior fiscal year end. This increase was primarily on commercial OEM platforms. For the fourth quarter of fiscal 2024, cash flow provided by operations was $77.7 million, which was in line with expectations previously provided. Conference Call  TRIUMPH will hold a conference call today, May 23rd, at 8:30 a.m. (ET) to discuss the fourth quarter of fiscal 2024 results.  The conference call will be available live and archived on the Company's website at http://www.triumphgroup.com.  A slide presentation will be included with the audio portion of the webcast, and the presentation has been posted on the Company's website at https://www.triumphgroup.com/filings-financial/quarterly-results. An audio replay will be available from May 23rd to May 30th by calling (844) 344-7529 (Domestic) or (412) 317-0088 (International), passcode #8487447. About TRIUMPH  TRIUMPH, headquartered in Radnor, Pennsylvania, designs, develops, manufactures, repairs and provided spare parts across a broad portfolio of aerospace and defense systems and components. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators. More information about TRIUMPH can be found on the Company's website at www.triumphgroup.com. 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 Triumph Group's reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES FINANCIAL DATA (UNAUDITED) TRIUMPH GROUP, INC. AND SUBSIDIARIES (in thousands, except per share data) Three Months Ended Year Ended March 31, March 31, 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) TRIUMPH GROUP, INC. AND SUBSIDIARIES (dollars in thousands, except share data)   BALANCE SHEETS UnauditedMarch 31,2024 UnauditedMarch 31,2023 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