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Triumph Group Inc. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Triumph Group Inc. (TGI) filed Quarterly Report for the period ended 2010-09-30.

Triumph Group Inc. has a market cap of $2.12 billion; its shares were traded at around $89.35 with a P/E ratio of 16.7 and P/S ratio of 1.5. The dividend yield of Triumph Group Inc. stocks is 0.2%. Triumph Group Inc. had an annual average earning growth of 7.3% over the past 10 years.TGI is in the portfolios of Private Capital of Private Capital Management, Arnold Schneider of Schneider Capital Management, Bruce Kovner of Caxton Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Net sales increased by $455.9 million, or 145.6%, to $769.1 million for the quarter ended September 30, 2010 from $313.1 million for the quarter ended September 30, 2009. The acquisition of Vought along with

Cost of sales increased by $370.6 million, or 165.8%, to $594.1 million for the quarter ended September 30, 2010 from $223.5 million for the quarter ended September 30, 2009. This increase includes the impact of the acquisition of Vought and the fiscal 2010 acquisitions noted above, which contributed $357.8 million. Excluding the effects of these acquisitions, gross margin was 29.5% for the quarter ended September 30, 2010, compared with 28.6% for the quarter ended September 30, 2009. Organic gross margin improved due to a favorable settlement of a retroactive price agreement during the quarter, as well as increased sales in our Aftermarket Services segment, offset by increased warranty expenses.

Segment operating income increased by $52.7 million, or 123.8%, to $95.3 million for the quarter ended September 30, 2010 from $42.6 million for the quarter ended September 30, 2009. The segment operating income increase was a direct result of contributions from the acquisition of Vought and the fiscal 2010 acquisitions ($43.0 million), as well as improvement in organic gross margin ($3.0 million), decreased salaries and benefits due to lower headcounts for organic businesses ($1.4 million) and decreased legal expenses ($1.0 million). In addition, the prior year period was negatively impacted by the events described above.

Corporate expenses increased by $3.7 million, or 68.4%, to $9.1 million for the quarter ended September 30, 2010 from $5.4 million for the quarter ended September 30, 2009. The corporate expense increase was impacted by integration costs associated with the acquisition of Vought ($1.3 million), increased compensation and benefits ($1.0 million) due to increased corporate head count as compared to the prior year period, increases in workers compensation expense ($1.0 million) and an increase of $0.2 million of start up costs related to the Mexican facility compared to the prior year period.

Interest expense and other increased by $18.0 million, or 326.4%, to $23.5 million for the quarter ended September 30, 2010 compared to $5.5 million for the prior year period. This increase was due to higher average debt outstanding during the quarter ended September 30, 2010 mostly due to the acquisition of Vought as compared to the quarter ended September 30, 2009, including the Senior Subordinated Notes due 2017 (the 2017 Notes), the Senior Notes due 2018 (the 2018 Notes) and the Term Loan, along with higher interest rates on our revolving credit facility.

Loss from discontinued operations before income taxes was $0.4 million for the quarter ended September 30, 2010 compared with a loss from discontinued operations before income taxes of $1.3 million, for the quarter ended September 30, 2009. The loss from discontinued operations improved versus the prior year due to decreased headcount. The benefit for income taxes was $0.2 million for the quarter ended September 30, 2010 compared to a benefit of $0.7 million in the prior year period.

Read the The complete Report

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