TransDigm(TDG) - 2024 Q1 - Quarterly Report

Financial Performance - Total net sales for the thirteen-week period ended December 30, 2023, were $1,789 million, representing a 28.1$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$859 million, with EBITDA as defined at $912 million, representing 51.0$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].