TransDigm(US:TDG)2025-02-04 21:04Financial Performance - Net sales for the thirteen-week period ended December 28, 2024, increased to $2,006 million, up 12.2% from $1,789 million in the same period last year[9] - Gross profit rose to $1,235 million, representing a gross margin of 61.6%, compared to $1,042 million and a margin of 58.2% in the prior year[9] - Net income attributable to TD Group for the period was $493 million, a 29.1% increase from $382 million year-over-year[9] - Earnings per share attributable to TD Group common stockholders increased to $7.62, up 56.8% from $4.87 in the previous year[9] - Operating cash flow for the period was $752 million, up from $636 million year-over-year, reflecting strong operational performance[13] - EBITDA for the thirteen-week period ended December 28, 2024, was $1,087 million, representing a 26.5% increase from $859 million in the same period of 2023[176] - Total segment EBITDA As Defined increased by $156 million, or 16.3%, to $1,113 million for the thirteen-week period ended December 28, 2024, compared to $957 million for the same period in 2023[120] Assets and Liabilities - Total assets decreased to $21,515 million from $25,586 million as of September 30, 2024, reflecting a reduction of 15.9%[8] - Total liabilities decreased to $27,766 million from $31,869 million, a decline of 13.0%[8] - The company reported a cash and cash equivalents balance of $2,459 million, down from $6,261 million, a decrease of 60.7%[8] - The current portion of long-term debt remained stable at $98 million, while total long-term debt was $24,302 million[8] - Total stockholders' equity decreased to $(6,877) million as of December 28, 2024, compared to $(4,266) million as of September 30, 2023[12] - The company’s accumulated deficit improved to $(6,877) million as of December 28, 2024, from $(7,362) million as of September 30, 2024[8] Cash Flow and Dividends - The company did not declare cash dividends for the current period, compared to $35.00 per share in the same period last year[9] - The company paid dividends and dividend equivalent payments totaling $4,396 million during the period, compared to $2,038 million in the prior year[13] - Net cash used in financing activities was $4,516 million during the thirteen-week period ended December 28, 2024, primarily due to dividend payments of $4,396 million[141] - Cash and cash equivalents at the end of the period decreased to $2,459 million from $4,135 million at the end of the previous year[13] Acquisitions - The Company acquired Raptor Scientific for approximately $646 million, financed through existing cash, enhancing its position in the aerospace and defense markets[20] - The acquisition of CPI's Electron Device Business was completed for approximately $1,386 million, also financed through existing cash, further strengthening the Company's capabilities in electronic components[24] - SEI Industries LTD was acquired for approximately $171 million, expanding the Company's offerings in aerial firefighting and liquid transportation solutions[29] - FPT Industries LLC was acquired for approximately $57 million, enhancing the Company's product range in specialist fuel tanks and flotation systems[32] - The total estimated fair value of assets acquired from Raptor Scientific included $9 million in trade accounts receivable and $197 million in other intangible assets[23] - The acquisition of CPI's Electron Device Business included $40 million in trade accounts receivable and $368 million in other intangible assets[28] Revenue Recognition and Sales Performance - The Company recognizes revenue primarily at a point in time, with a significant portion derived from the aerospace and defense industry[39][40] - Organic sales rose by $118 million, or 6.6%, driven by an $80 million increase in defense sales (up 11.8%) and a $57 million increase in commercial aftermarket sales (up 9.9%) for the same period[111] - The Power & Control segment generated net sales of $1,027 million, an increase of 15.4% from $890 million in the prior year[90] - The Airframe segment's net sales rose to $946 million, up 9.8% from $862 million in the previous year[90] Expenses and Taxation - Selling and administrative expenses decreased by $9 million, or 4%, to $211 million, representing 10.5% of net sales compared to 12.3% in the prior year[113] - Interest expense-net increased to $378 million for the thirteen-week period ended December 28, 2024, compared to $300 million in the same period in 2023[90] - The effective income tax rate for the thirteen-week period ended December 28, 2024, was 20.4%, down from 21.7% for the same period in 2023[67] Stock Repurchase and Shareholder Returns - The company repurchased 252,800 shares of common stock at an average price of $1,248.65 per share for a total of $316 million during the first quarter of fiscal 2025[55] - The total amount available for repurchase under the $2,200 million stock repurchase program is $972 million as of December 28, 2024[55] Future Outlook and Standards - The Company plans to adopt new accounting standards effective for fiscal 2025, which may expand disclosures but are not expected to impact consolidated financial statements[17] - The company is currently evaluating the impact of new accounting standards (ASU 2023-09 and ASU 2024-03) on its disclosures, effective for fiscal years starting after December 15, 2024, and December 15, 2026, respectively[18][19]