CLEVELAND, Feb. 8, 2024 /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, 2023. First quarter highlights include: Net sales of $1,789 million, up 28% from $1,397 million in the prior year's quarter; Net income of $382 million, up 67% from the prior year's quarter; Earnings per share of $4.87, up 46% from the prior year's quarter; EBITDA As Define ...

Financial Performance - Total net sales for the thirteen-week period ended December 30, 2023, were $1,789 million, representing a 28.1% increase from $1,397 million in the same period of 2022[7]. - Gross profit for the same period was $1,042 million, up from $793 million, indicating a gross margin improvement[7]. - Net income attributable to TD Group for the period was $382 million, compared to $228 million in the prior year, reflecting a 67.0% year-over-year increase[7]. - Earnings per share attributable to TD Group common stockholders increased to $4.87 from $3.33, marking a 46.0% rise[7]. - Net income for the thirteen-week period ended December 30, 2023, was $382 million, compared to $229 million for the same period in 2022, representing a 67% increase[42]. - Basic and diluted earnings per share increased to $4.87 for the period ended December 30, 2023, up from $3.33 in the prior year, reflecting a 46% growth[42]. - Total segment EBITDA As Defined for the thirteen-week period ended December 30, 2023, was $957 million, compared to $727 million for the same period in 2022, marking a growth of approximately 31%[82]. Cash and Liquidity - Cash and cash equivalents increased to $4,135 million as of December 30, 2023, up from $3,472 million at September 30, 2023[6]. - Net cash provided by operating activities for the same period was $636 million, compared to $377 million in the prior year, indicating a 68% increase[12]. - The company reported a net increase in cash and cash equivalents of $663 million, ending the period with $4,135 million[12]. - The company paid cash dividends of $35.00 per common share during the period, compared to no dividends in the prior year[106]. - The company declared special dividends of $35 per share, totaling $2,020 million, significantly higher than $38 million in the previous year[12]. Debt and Liabilities - Long-term debt rose to $21,346 million from $19,330 million, indicating a 10.5% increase[6]. - Total liabilities assumed in the Calspan acquisition were adjusted to $78 million, with net assets acquired totaling $730 million[25]. - The Company has a total long-term debt of $7,157 million as of December 30, 2023, which includes various secured notes and term loans[61]. - The Company issued $1,000 million in 7.125% senior secured notes due 2031, with an issue price of 99.25%, resulting in an approximate $8 million discount[49]. - The Company has $22,037 million in non-current liabilities as of December 30, 2023[150]. Acquisitions and Growth Strategy - The Company entered into a definitive agreement to acquire CPI's Electron Device Business for approximately $1,385 million in cash, expected to close in fiscal 2024[19]. - The acquisition of Calspan Corporation was completed for a total purchase price of $730 million, enhancing the Company's capabilities in aerospace and defense[20]. - Approximately $245 million of goodwill was recognized from the Calspan acquisition, with an expected tax deductibility of about $218 million[25]. - The company completed a series of acquisitions for a total purchase price of $24 million in the fiscal year ended September 30, 2023, with expected tax deductibility of approximately $12 million in goodwill[26]. - The acquisition strategy aims to strengthen the Company's position in niche aerospace markets with significant aftermarket content[28]. Segment Performance - The Power & Control segment reported net sales of $885 million for the thirteen-week period ended December 30, 2023, up from $725 million in the prior year, reflecting a growth of approximately 22%[82]. - The Airframe segment achieved net sales of $862 million for the same period, compared to $637 million in the previous year, indicating an increase of approximately 35%[82]. - The increase in defense sales was primarily due to improving U.S. government defense spending, contributing $149 million, or 28.0% growth[108]. - EBITDA for the period was $859 million, with EBITDA as defined at $912 million, representing 51.0% of net sales[106]. Operational Insights - The company observed a rebound in commercial aerospace markets, with domestic air travel nearing or surpassing pre-pandemic levels, while international recovery is progressing but remains below pre-pandemic levels[99]. - The company continues to face disruptions in the global supply chain and labor markets, affecting the availability of raw materials and increasing costs[101]. - The company aims to differentiate itself through highly engineered proprietary aerospace components, focusing on value-driven operating strategies to improve gross profit and operational income over the long term[96]. Tax and Compliance - The effective income tax rate for the thirteen-week period ended December 30, 2023, was 21.7%, down from 23.9% in the same period of the previous year[57]. - The company is currently under examination for federal income taxes in Canada for fiscal years 2013 through 2019, and in France and Germany for various fiscal years[58]. - Unrecognized tax benefits amounted to $17 million as of December 30, 2023, with a potential reduction of approximately $6 million expected within the next twelve months[59]. Other Comprehensive Income - Other comprehensive income attributable to TD Group was $38 million for the period, down from $159 million in the prior year[8]. - Foreign currency translation adjustments resulted in a loss of $53 million on derivatives, impacting overall comprehensive income[8].

TransDigm Group Incorporated (TDG) is slated to report first-quarter fiscal 2024 results on Feb 8, before market open.TransDigm delivered a four-quarter average earnings surprise of 9.20%. The recovery in the commercial aerospace market and strong defense sales are likely to have bolstered TDG’s fiscal first-quarter results.Power & Control Segment to Remain RobustStrong sales from the commercial aftermarket as well as commercial original equipment manufacturer (OEM) businesses, backed by continued recovery ...

Wall Street analysts forecast that TransDigm Group (TDG) will report quarterly earnings of $6.37 per share in its upcoming release, pointing to a year-over-year increase of 39.1%. It is anticipated that revenues will amount to $1.67 billion, exhibiting an increase of 19.6% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial ...

TransDigm Group Incorporated (NYSE:TDG) Q4 2023 Earnings Conference Call November 9, 2023 11:00 AM ET Company Participants Jaimie Stemen - Director of Investor Relations Kevin Stein - President and Chief Executive Officer Mike Lisman - Co-Chief Operating Officer Sarah Wynne - Chief Financial Officer Joel Reiss - Co-Chief Operating Officer Conference Call Participants Myles Walton - Wolfe Research Noah Poponak - Goldman Sachs Robert Stallard - Vertical Research Group David Strauss - Barclays Ronald Epstein - ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-32833 TransDigm Group Incorporated (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction ...

TransDigm Group Incorporated (NYSE:TDG) Q3 2023 Earnings Conference Call August 8, 2023 11:00 AM ET Company Participants Kevin Stein - President & Chief Executive Officer Joel Reiss - Co-Chief Operating Officer Sarah Wynne - Chief Financial Officer Mike Lisman - Co-Chief Operating Officer Jaimie Stemen - Director of Investor Relations Conference Call Participants David Strauss - Barclays Kristine Liwag - Morgan Stanley Myles Walton - Wolfe Research Ken Herbert - RBC Capital Markets Robert Stallard - Vertica ...

Agenda TRANSDIGM Market Review Joel Reiss Co‐COO Q&A Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for future periods. These forward‐looking statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events, many of which are out ...

PART I FINANCIAL INFORMATION [ITEM 1 Financial Statements](index=4&type=section&id=ITEM%201%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, comprehensive income, changes in stockholders' deficit, and cash flows, along with detailed notes covering business description, acquisitions, accounting policies, debt, taxes, and commitments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Amounts in millions) | Metric | July 1, 2023 | Sept 30, 2022 | | :---------------------- | :----------- | :------------ | | Total Assets | $19,555 | $18,107 | | Total Liabilities | $21,942 | $21,873 | | Total Stockholders' Deficit | $(2,387) | $(3,766) | | Cash and cash equivalents | $3,071 | $3,001 | | Inventories—Net | $1,603 | $1,332 | - Total assets increased by **$1,448 million**, and total stockholders' deficit decreased by **$1,379 million** from September 30, 2022, to July 1, 2023[6](index=6&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income Highlights (Amounts in millions, except per share amounts) | Metric | 13 Weeks Ended July 1, 2023 | 13 Weeks Ended July 2, 2022 | 39 Weeks Ended July 1, 2023 | 39 Weeks Ended July 2, 2022 | | :----------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Sales | $1,744 | $1,398 | $4,733 | $3,919 | | Gross Profit | $1,029 | $816 | $2,750 | $2,213 | | Income from Operations | $783 | $599 | $2,067 | $1,574 | | Net Income Attributable to TD Group | $351 | $238 | $883 | $600 | | Earnings per share (basic and diluted) | $6.14 | $4.10 | $14.80 | $9.44 | - Net sales for the thirty-nine-week period increased by **20.8%** year-over-year, while net income attributable to TD Group surged by **47.2%** for the same period[8](index=8&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income Highlights (Amounts in millions) | Metric | 13 Weeks Ended July 1, 2023 | 13 Weeks Ended July 2, 2022 | 39 Weeks Ended July 1, 2023 | 39 Weeks Ended July 2, 2022 | | :----------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income attributable to TD Group | $351 | $238 | $883 | $600 | | Foreign currency translation adjustment | $31 | $(155) | $211 | $(208) | | Unrealized gains on derivatives | $35 | $24 | $26 | $252 | | Total Comprehensive Income Attributable to TD Group | $417 | $113 | $1,120 | $650 | - Total comprehensive income attributable to TD Group for the thirty-nine-week period increased by **72.3%** year-over-year, largely due to a positive swing in foreign currency translation adjustment[9](index=9&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Deficit) Changes in TD Group Stockholders' Deficit (Amounts in millions) | Metric | Sept 30, 2022 | July 1, 2023 | | :----------------------------------- | :------------ | :----------- | | Total TD Group stockholders' deficit | $(3,773) | $(2,394) | | Accumulated deficit | $(3,914) | $(3,034) | | Accumulated other comprehensive loss | $(267) | $(30) | - The total TD Group stockholders' deficit improved by **$1,379 million** from September 30, 2022, to July 1, 2023, primarily driven by net income and positive changes in accumulated other comprehensive loss[6](index=6&type=chunk)[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (Amounts in millions) | Metric | 39 Weeks Ended July 1, 2023 | 39 Weeks Ended July 2, 2022 | | :----------------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $913 | $675 | | Net cash used in investing activities | $(852) | $(505) | | Net cash used in financing activities | $(11) | $(1,116) | | Net increase (decrease) in cash and cash equivalents | $70 | $(979) | | Cash and cash equivalents, end of period | $3,071 | $3,808 | - Net cash provided by operating activities increased by **$238 million** year-over-year, contributing to a net increase in cash and cash equivalents of **$70 million** for the thirty-nine-week period, a significant improvement from a **$979 million** decrease in the prior year[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. DESCRIPTION OF THE BUSINESS](index=10&type=section&id=1.%20DESCRIPTION%20OF%20THE%20BUSINESS) TransDigm Group Incorporated is a leading global designer, producer, and supplier of highly engineered proprietary aircraft components for use on nearly every commercial and military aircraft, offering a broad range of specialized aerospace products - TransDigm is a leading global designer, producer, and supplier of highly engineered proprietary aircraft components for commercial and military aircraft[16](index=16&type=chunk) - The company offers a broad range of products including mechanical/electro-mechanical actuators, ignition systems, specialized pumps and valves, power conditioning devices, electric motors, batteries, latching devices, cockpit security components, displays, audio/radio/antenna systems, lavatory components, seat belts, interior surfaces, sensor products, switches, thermal protection, lighting, parachutes, hoists, winches, cargo systems, and testing services[16](index=16&type=chunk) [2. UNAUDITED INTERIM FINANCIAL INFORMATION](index=10&type=section&id=2.%20UNAUDITED%20INTERIM%20FINANCIAL%20INFORMATION) The interim financial information is unaudited but includes all necessary recurring adjustments for fair presentation, prepared in conformity with U.S. GAAP, and should be read in conjunction with the prior fiscal year's Form 10-K - The financial information is unaudited but reflects all necessary normal recurring adjustments for fair presentation[17](index=17&type=chunk) - The financial statements are prepared in conformity with U.S. GAAP for interim financial statements[17](index=17&type=chunk) - Results for the thirty-nine-week period ended July 1, 2023, are not necessarily indicative of the results to be expected for the full year[17](index=17&type=chunk) [3. ACQUISITIONS](index=10&type=section&id=3.%20ACQUISITIONS) The company completed the acquisition of Calspan Corporation for $729 million in May 2023 and finalized the DART Aerospace acquisition from May 2022, along with several smaller Extant Aerospace product line acquisitions, all aimed at strengthening its position in proprietary aerospace components with significant aftermarket content - Acquired Calspan Corporation on May 8, 2023, for **$729 million**, a leading independent provider of highly engineered testing and technology development services for the aerospace and defense industry[18](index=18&type=chunk) - Finalized the DART Aerospace acquisition (May 25, 2022) for **$359 million**, a leading provider of helicopter mission equipment solutions[20](index=20&type=chunk) - Completed an **$11 million** product line acquisition for Extant Aerospace in the thirty-nine-week period ended July 1, 2023, and a series of **$88 million** acquisitions in fiscal 2022[23](index=23&type=chunk)[24](index=24&type=chunk) - These acquisitions strengthen and expand the company's position in niche markets with significant aftermarket content and provide opportunities to create value through core operating strategies[26](index=26&type=chunk) [4. RECENT ACCOUNTING PRONOUNCEMENTS](index=13&type=section&id=4.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) The company adopted ASU 2020-04, 'Reference Rate Reform,' and related amendments, applying practical expedients to preserve cash flow hedge accounting for LIBOR to Term SOFR conversions, with no material impact on financial statements - Applied ASU 2020-04, 'Reference Rate Reform,' and related amendments (ASU 2021-01, ASU 2022-06) to ease accounting impacts of transitioning away from LIBOR[27](index=27&type=chunk) - Entered into LIBOR to Term SOFR basis interest rate swap and cap agreements, applying practical expedients to preserve existing swaps and caps as qualifying cash flow hedges[27](index=27&type=chunk) - The application of this standard did not have a material impact on the Company's condensed consolidated financial statements and disclosures[27](index=27&type=chunk) [5. REVENUE RECOGNITION](index=13&type=section&

Agenda Operating Performance and Financial Results Mike Lisman CFO Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information TransDigm Overview Proprietary products OEM Aftermarket Comm OEM 27% Comm Afterma rket 31% De fense 42% FY 23 Guidance Midpoint Change Guidance Summary (current guidance includes Calspan) Low High (1) Pro forma revenue is for the fiscal year ended 9/30/2022. Excludes impact of the Calspan Corporation acquisition completed May 2023. Includes full year imp ...