Triumph Group, Inc (TGI) has reported a 43.51 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $34.81 million, or $0.70 a share in the quarter, compared with $61.61 million, or $1.25 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $49.38 million, or $1 a share compared with $65.10 million or $1.32 a share, a year ago. Revenue during the quarter dropped 8.38 percent to $874.77 million from $954.77 million in the previous year period. Total expenses were 91.94 percent of quarterly revenues, up from 88.47 percent for the same period last year. That has resulted in a contraction of 347 basis points in operating margin to 8.06 percent.
Operating income for the quarter was $70.49 million, compared with $110.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $90.07 million compared with $122.22 million in the prior year period. At the same time, adjusted EBITDA margin contracted 250 basis points in the quarter to 10.30 percent from 12.80 percent in the last year period.
"Triumph Group’s adjusted second quarter results were in line with our expectations and reflected improved sequential cash performance and continued strong operating margins in Integrated Systems and Product Support," stated Daniel J. Crowley, Triumph’s president and chief executive officer. "During the quarter, our pipeline and backlog grew, and we continued to strengthen our business development efforts to drive organic growth."
For financial year 2017, Triumph Group, Inc expects revenue to be in the range of $3,600 million to $3,700 million. The company projects diluted earnings per share to be in the range of $3.15 to $3.45.
Working capital drops significantly
Triumph Group, Inc has witnessed a decline in the working capital over the last year. It stood at $825.76 million as at Sep. 30, 2016, down 42.82 percent or $618.40 million from $1,444.16 million on Sep. 30, 2015. Current ratio was at 1.81 as on Sep. 30, 2016, down from 2.70 on Sep. 30, 2015. Days sales outstanding went down to 46 days for the quarter compared with 52 days for the same period last year.
Debt remains almost stable
Triumph Group, Inc has witnessed an increase in total debt over the last one year. It stood at $1,615.69 million as on Sep. 30, 2016, up 1 percent or $15.99 million from $1,599.70 million on Sep. 30, 2015. Total debt was 33.30 percent of total assets as on Sep. 30, 2016, compared with 25.50 percent on Sep. 30, 2015. Debt to equity ratio was at 1.67 as on Sep. 30, 2016, up from 0.71 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.94 for the quarter from 7.04 for the same period last year.
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