Triumph Group, Inc (TGI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $29.33 million, or $ 0.59 a share in the quarter, against a net loss of $88.65 million, or $1.80 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $50.12 million, or $1.01 a share compared with $68.63 million or $1.39 a share, a year ago. Revenue during the quarter dropped 7.55 percent to $844.86 million from $913.87 million in the previous year period. Operating margin for the quarter period stood at positive 6.53 percent as compared to a negative 13.81 percent for the previous year period.
Operating income for the quarter was $55.17 million, compared with an operating loss of $126.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $84.64 million compared with $121.95 million in the prior year period. At the same time, adjusted EBITDA margin contracted 333 basis points in the quarter to 10.02 percent from 13.34 percent in the last year period.
"Our third quarter performance reflected a continued focus on working capital initiatives, as well as improved margins in our Integrated Systems and Product Support segments, which partially offset the impact of anticipated volume declines on legacy programs," stated Daniel J. Crowley, Triumph’s president and chief executive officer. "Our new business pipeline and win rate continue to improve, and we are pleased to have added several new customers in the third quarter. We’ve completed many of the critical steps of our strategy over the past three quarters and remain focused on transforming all aspects of our business in order to deliver value to our shareholders."
For fiscal year 2017, Triumph Group, Inc forecasts revenue to be in the range of $3,500 million to $3,600 million. The company expects 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 $750.57 million as at Dec. 31, 2016, down 48.55 percent or $708.26 million from $1,458.83 million on Dec. 31, 2015. Current ratio was at 1.64 as on Dec. 31, 2016, down from 2.79 on Dec. 31, 2015. Days sales outstanding went down to 46 days for the quarter compared with 52 days for the same period last year.
Debt comes down marginally
Triumph Group, Inc has recorded a decline in total debt over the last one year. It stood at $1,658.38 million as on Dec. 31, 2016, down 1.34 percent or $22.57 million from $1,680.95 million on Dec. 31, 2015. Total debt was 34.13 percent of total assets as on Dec. 31, 2016, compared with 27.79 percent on Dec. 31, 2015. Debt to equity ratio was at 1.69 as on Dec. 31, 2016, up from 0.78 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
