TransDigm Group Reports Fiscal 2018 First Quarter Results
Cleveland, Ohio, February 6, 2018/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 30, 2017.
Highlights for the first quarter include:
Net sales of $848.0 million, up 4.2% from $814.0 million;
Net income from continuing operations of $312.0 million, up 162.5% from $118.9 million;
Earnings per share from continuing operations of $4.60, up 1,022.0% from $0.41;
EBITDA As Defined of $401.5 million, up 5.3% from $381.2 million;
Adjusted earnings per share of $5.58, up 121.4% from $2.52, this includes $2.96 per share of favorable impact from tax reform; and
Upward revision to fiscal 2018 net income and earnings per share guidance.
Net sales for the quarter rose 4.2%, or $33.9 million, to $848.0 million from $814.0 million in the comparable quarter a year ago.
Net income from continuing operations for the quarter rose 162.5% to $312.0 million, or $4.60 per share, compared to $118.9 million, or $0.41 per share, in the comparable quarter a year ago. The current quarter included a provisional net tax benefit of $147.1 million to record the estimated impact of the U.S. Tax Cuts and Jobs Act (tax reform), primarily including a $23.1 million charge for the U.S. tax on deemed repatriated earnings of non-U.S. subsidiaries, more than offset by the $170.2 benefit for the remeasurement of our net U.S. deferred tax balance. The effective tax rate for the 2018 first quarter was a benefit of 63.4% compared to a provision of 14.4% for the 2017 first quarter. The balance of the increase in net income primarily reflects the increase in net sales described above, lower refinancing costs, lower acquisition related costs and improvements to our operating margin resulting from the strength of our proprietary products and continued productivity efforts. This growth in net income was partially offset by higher interest expense.
Earnings per share were reduced in both 2018 and 2017 by $1.01 per share and $1.70 per share, respectively, representing dividend equivalent payments made during each quarter.
Net income from discontinued operations in the quarter was $2.8 million, or $0.05 earnings per share.
Adjusted net income for the quarter rose 117.3% to $310.1 million, or $5.58 per share, from $142.7 million, or $2.52 per share, in the comparable quarter a year ago. Adjusted earnings per share in the current quarter included $2.96 of favorable impact from the enactment of tax reform. Excluding this favorable tax impact, current earnings per share of $2.62 increased 4.0% over the prior year.
The following information was filed by Transdigm Group Inc (TDG) on Tuesday, February 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: TDG CIK: 1260221 Form Type:10-Q Quarterly Report Accession Number: 0001260221-18-000014 Submitted to the SEC: Wed Feb 07 2018 12:10:35 PM EST Accepted by the SEC: Wed Feb 07 2018 Period: Saturday, December 30, 2017 Industry: Aircraft Parts And Auxiliary Equipment