TransDigm Group Reports Fiscal 2019 First Quarter Results
Cleveland, Ohio, February 5, 2019/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 29, 2018.
Highlights for the first quarter include:
Net sales of $993.3 million, up 17.1% from $848.0 million;
Net income from continuing operations of $196.0 million, down 37.2% from $312.0 million;
Earnings per share from continuing operations of $3.05, down 33.7% from $4.60;
EBITDA As Defined of $486.7 million, up 21.2% from $401.5 million;
Adjusted earnings per share of $3.85, down 31.0% from $5.58, with the prior year period including $2.65 per share of one-time favorable impact from the enactment of tax reform; and
Upward revision to fiscal 2019 financial guidance.
Net sales for the quarter rose 17.1%, or $145.3 million, to $993.3 million from $848.0 million in the comparable quarter a year ago. Organic sales growth was 11.6%.
Net income from continuing operations for the quarter declined 37.2% to $196.0 million, or $3.05 per share, compared to $312.0 million, or $4.60 per share, in the comparable quarter a year ago. The decrease in net income is due to a higher effective tax rate of 21.5% for the current quarter compared to (63.4%) for the thirteen weeks ended December 30, 2017. The prior year quarter was favorably impacted by the enactment of the U.S. Tax Cuts and Jobs Act (tax reform) and included a one-time provisional net tax benefit of $147.1 million, or $2.65 per share. The increase to the balance of net income primarily reflects the increase in net sales described above and improvements to our operating margin resulting from the strength of our proprietary products and continued productivity efforts.
Earnings per share were reduced in both 2019 and 2018 by $0.43 per share and $1.01 per share, respectively, representing dividend equivalent payments made during each quarter.
Adjusted net income for the quarter decreased 30.2% to $216.3 million, or $3.85 per share, from $310.1 million, or $5.58 per share, in the comparable quarter a year ago. Adjusted earnings per share in the prior year quarter included $2.65 per share of one-time favorable impact from the enactment of tax reform. Excluding this favorable tax impact, current earnings per share increased 31.4% over $2.93 per share in the prior year.
EBITDA for the quarter increased 19.5% to $457.2 million from $382.5 million for the comparable quarter a year ago. EBITDA As Defined for the period increased 21.2% to $486.7 million compared with $401.5 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 49.0%.
The following information was filed by Transdigm Group Inc (TDG) on Tuesday, February 5, 2019 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: 0001260221-19-000007 Submitted to the SEC: Wed Feb 06 2019 8:43:39 AM EST Accepted by the SEC: Wed Feb 06 2019 Period: Saturday, December 29, 2018 Industry: Aircraft Parts And Auxiliary Equipment