TransDigm Group Reports Fiscal 2019 Second Quarter Results
Cleveland, Ohio, May 7, 2019/PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the second quarter ended March 30, 2019.
Highlights for the second quarter include:
Net sales of $1,195.9 million, up 28.2% from $933.1 million;
Net income from continuing operations of $202.4 million, up 0.3% from $201.8 million;
Earnings per share from continuing operations of $3.60, down 0.8% from $3.63;
EBITDA As Defined of $571.8 million, up 23.5% from $463.1 million;
Adjusted earnings per share of $4.21, up 11.1% from $3.79; and
Upward revision to fiscal 2019 sales, EBITDA As Defined and adjusted earnings per share guidance.
During the quarter, on March 14, 2019, TransDigm completed the acquisition of Esterline Technologies Corporation (NYSE:ESL), a supplier of products to the global aerospace and defense industry. Esterline shareholders received $122.50 per share in cash, without interest in a transaction valued at approximately $4 billion in total consideration, including the pay off of Esterline debt.
Also during the quarter, on February 13, 2019 TransDigm completed the private offerings of $4.0 billion aggregate principal amount of 6.25% Senior Secured Notes due 2026 and $550 million aggregate principal amount of 7.50% Senior Subordinated Notes due 2027.
The net proceeds of the $4.0 billion secured notes were used to both fund the purchase price of the Esterline acquisition and to allow for substantial near term financial flexibility.
The net proceeds from the $550 million of subordinated notes were used to redeem all of the Company's outstanding senior subordinated notes due 2020 and replaced them with notes due 2027.
These events above significantly impacted certain year-over-year comparisons.
Net sales for the quarter rose 28.2%, or $262.8 million, to $1,195.9 million from $933.1 million in the comparable quarter a year ago. Organic sales growth was 11.0%. Acquisition sales contributed $160.4 million, of which $122.0 million were from Esterline for the 17 days of ownership in the quarter.
Net income from continuing operations for the quarter increased 0.3% to $202.4 million, or $3.60 per share, compared to $201.8 million, or $3.63 per share, in the comparable quarter a year ago. The increase in net sales described above was offset primarily by higher interest expense and effective tax rate related to the new debt issued to fund the purchase of Esterline as well as to allow for substantial near term financial flexibility. Higher operating costs and acquisition-related expenses attributable to Esterline also had a
The following information was filed by Transdigm Group Inc (TDG) on Tuesday, May 7, 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.