Triumph (US:TGI)2020-08-04 23:24Financial Performance - Net sales for the three months ended June 30, 2020, were $495.1 million, a decrease of 32.2% compared to $730.2 million for the prior year period[139]. - Operating loss for the same period was $252.4 million, compared to operating income of $35.5 million in the prior year[139]. - Net loss was $277.3 million, or ($5.35) per common share, compared to net income of $18.1 million, or $0.36 per diluted common share in the prior year[139]. - Total net sales decreased by $235.2 million, or 32.2%, to $495.1 million for the three months ended June 30, 2020, compared to $730.2 million for the same period in 2019[171]. - Adjusted EBITDA for the three months ended June 30, 2020, was $28.5 million, down from $80.6 million in the same period of 2019[157]. - Adjusted EBITDAP for the three months ended June 30, 2020, was $17.6 million, compared to $65.8 million for the same period in 2019[157]. - Segment operating loss increased by $287.0 million, or 509.5%, to $230.7 million for the three months ended June 30, 2020, from operating income of $56.3 million in 2019[162]. - Systems & Support net sales decreased by $73.7 million, or 23.5%, to $239.9 million, primarily due to the impact of the COVID-19 pandemic[175]. - Aerospace Structures net sales decreased by $161.3 million, or 38.5%, to $257.9 million, with organic net sales down by $131.6 million[175]. Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash outflow of $197.5 million, a decrease of $202.6 million compared to a net cash inflow of $5.0 million for the same period in 2019[179]. - Cash flows used in financing activities were $250.9 million for the three months ended June 30, 2020, compared to $58.1 million for the same period in 2019[183]. - As of June 30, 2020, the company had $30.9 million in cash on hand and $323.1 million available under its existing credit agreement[186]. - The company anticipates approximately $120.0 million in savings to operating cash flows for fiscal 2021, with $33.0 million realized as of June 30, 2020[181]. - The company is evaluating additional funding options from the U.S. government and other sources to meet anticipated cash requirements for at least the next 12 months[188]. Operational Changes and Restructuring - The company has committed to divesting its composites manufacturing operations in Georgia and Thailand, with expected proceeds of approximately $100.0 million from these transactions[151]. - The company incurred restructuring costs of $15.4 million in the three months ended June 30, 2020, compared to $3.0 million in the prior year[136]. - The company has committed to restructuring plans initiated in fiscal 2016, with substantial completion expected by March 31, 2020[180]. - The company expects additional costs related to the COVID-19-related reduction in OEM production rates, which may negatively impact earnings and cash flows[140]. Market and Demand Outlook - The company anticipates a reduction in demand for commercial aviation aftermarket and production due to COVID-19, impacting revenue across both operating segments in fiscal 2021[139]. - The Boeing 737 MAX program represented approximately 5% of revenue for the fiscal year ended March 31, 2020, with expectations of declines in revenue due to COVID-19[144]. Tax and Interest Expenses - Interest expense increased by $7.5 million, or 27.2%, to $35.0 million for the three months ended June 30, 2020, compared to $27.5 million in 2019[164]. - Non-service defined benefit income decreased by $4.0 million, or 26.8%, to $10.9 million for the three months ended June 30, 2020, compared to $14.9 million in 2019[165]. - The effective income tax rate for the three months ended June 30, 2020, was (0.3)%, compared to 21.0% for the same period in 2019[166]. Assets and Liabilities - Current assets amount to $837,566, while noncurrent assets total $940,591 as of June 30, 2020[197]. - The company is currently in compliance with all financial covenants under its debt documents[193]. - The 2024 Notes and guarantees are secured by second-priority liens on all assets of the company and its subsidiary guarantors[195]. - The company may redeem some or all of its Senior Notes prior to their stated maturities, subject to certain limitations[191]. - The company is obligated to offer to repurchase the Senior Notes at specified prices due to certain change-of-control events[191]. - There are covenants that limit the company's ability to incur additional indebtedness and make dividend payments[193]. - The company has no material changes in critical accounting policies since the last annual report[198]. Forward-Looking Statements - Forward-looking statements indicate potential uncertainties regarding capital requirements and restructuring plans[199].