TransDigm Group Reports Fiscal 2021 First Quarter Results
Cleveland, Ohio, February 9, 2021/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 January 2, 2021, which were significantly impacted by the COVID-19 pandemic.
First quarter highlights include:
•Net sales of $1,108 million, down 24.4% from $1,465 million in the prior year's quarter;
•Income from continuing operations of $50 million;
•Loss per share from continuing operations of $(0.42), with the loss driven by $1.32 per share of dividend equivalent payments made during the quarter, pursuant with the Company's employee stock option program;
•EBITDA As Defined margin of 42.8%, representing sequential improvement;
•EBITDA As Defined of $474 million;
•Adjusted earnings per share of $1.97; and
•Strong operating cash flow generation of $274 million.
Fiscal 2021 financial guidance will not be issued at this time.
Net sales for the quarter declined 24.4%, or $357 million, to $1,108 million from $1,465 million in the comparable quarter a year ago. In the current quarter, all sales represent organic sales.
Income from continuing operations for the quarter was $50 million, a decrease of 78.6% compared to $234 million in the comparable quarter a year ago. The decrease in income from continuing operations primarily reflects the decline in net sales described above and higher interest expense, partially offset by a lower effective tax rate.
GAAP earnings per share were reduced in the first quarter of fiscal 2021 and 2020 by $1.32 per share and $3.22 per share, respectively, as a result of dividend equivalent payments made during each quarter. As a reminder, GAAP earnings per share are reduced when TransDigm makes dividend equivalent payments pursuant to the Company's stock option plans. These dividend equivalent payments are made during the Company's first fiscal quarter each year and also upon payment of any special dividends.
Adjusted net income for the quarter decreased 59.4% to $115 million, or $1.97 per share, from $283 million, or $4.93 per share, in the comparable quarter a year ago.
EBITDA for the quarter decreased 38.0% to $378 million from $610 million for the comparable quarter a year ago. EBITDA As Defined for the period decreased 30.4% to $474 million compared with $681 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 42.8%.
The following information was filed by Transdigm Group Inc (TDG) on Tuesday, February 9, 2021 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.