TransDigm Group Incorporated (TDG) reported first quarter 2011 loss per share of 19 cents, which was below the Zacks Consensus Estimate of loss per share of 32 cents.
The company incurred one-time refinancing cost of $47.2 million, net of tax, or $0.89 per share and the acquisition and transaction related costs associated with the acquisition of McKechnie and Teleflex actuation business (Talley Actuation) of $6.1 million, net of tax, or $0.12 per share. Effects of these costs were offset by increased volumes from the acquisition and improved market conditions.
Adjusted earnings per share were 89 cents compared with 67 cents in the prior-year quarter.
Total Revenue
Total revenue in the quarter was $240.0 million, up 30.3% year over year and up 10.6% organically. Sales in the quarter were aided by contribution from acquisition of Dukes Aerospace, Semco Instruments and McKechnie Aerospace.
Income and Expenses
Operating income in the quarter was $21.6 million compared with $76.5 million in the prior-year period. SG&A expense was $31.0 million compared with $22.5 million.
Balance Sheet
Cash and cash equivalents was $234.3 million at the end of the quarter with long-term debt of $3,134.5 million. Net cash from operating activities was $62.1 million in the quarter compared with $59.6 million in the prior-year quarter.
Outlook
For fiscal 2011, the company expects earnings per share to be in the range of $2.08 to $2.47 per share or a mid-point of $2.27 per share. TransDigm reduced its estimate from the prior guidance of $2.16 to $2.58 per share.
Adjusted earnings per share are expected to be in the range of $3.70 to $4.09 per share or a mid-point of $3.89 per share, up from the prior estimate of $3.48 to $3.90 per share.
Based in Cleveland, Ohio, TransDigm Group Inc. designs, produces, and supplies engineered aircraft components for use on commercial and military aircraft. The company operates principally in the US. Major competitors of the company are Goodrich Corp. (GR), Honeywell International Inc. (HON) and United Technologies Corp. (UTX).
We currently maintain our Neutral rating on TransDigm Group with a Zacks #3 Rank (short-term Hold recommendation) over the next one-to-three months.
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